LYME INVESTMENT MANAGEMENT

Investments in Lyme Timber and its funds are limited to qualified investors including pensions, endowments, foundations, trusts, and high net-worth individuals. To ensure that its interests are aligned with those of its investors, Lyme Timber makes substantial investments in the funds under its management on the same terms and conditions as its investors. The general partners of Lyme Timber have significant personal investments in Lyme Timber, thus strengthening the alignment of interest.

The Lyme Northern Forest Fund Limited Partnership (LNFF) closed to investors in 2002 and purchased over 260,000 acres in New Hampshire, Maine, Pennsylvania, New York and Massachusetts (the Maine property was subsequently sold). Additionally, the Company has previously invested in Vermont, Virginia, West Virginia, North Carolina, Wisconsin and Minnesota.

Lyme’s current forestland investments are exclusively through The Lyme Forest Fund Limited Partnership (LFF) which closed in January 2006. The LFF purchased 276,000 acres in New York's Adirondack State Park in August 2006, 5,000 acres in Amherst, Maine in October 2006, and 125,000 acres of timber interests on the Cumberland Plateau in north central Tennessee in October 2007. Additionally through a partnership with Ecosystem Investment Partners, LFF has invested in two properties that are being developed mitigation banks - a 1,000 acre holding in the Great Dismal Swamp National Wildlife Refuge in southern Virginia in June 2007 and a 1,000 acre property in southern Delaware in December 2007.

Markets have begun to realize the inherent value in timber and the prices currently being paid by many investors clearly reflects this. Lyme’s goal is to seek investments that offer a superior return on a risk-adjusted basis and not to simply place capital in this asset class. The Company will continue to manage its Funds’ investments in forestland and rural real estate with the same methodology and emphasis that it has employed since 1976—purchasing assets that have unusual timber, real estate, and conservation values not fully perceived by others.